[Lesbella]

We should sell future right?

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@unnysnowflakes said:
What did people recommend to The Board of Directors about Project A, B, C & D?
My recollection was A b and c has returns above the Cost of Capital , so I said if you can borrow / fund through equity do , and D was a very low return so don’t invest.

Probably using probabilities index . But i also did not

[Lesbella]

@shivek said:
Yep. The df was 11% (11.2). The NPV of phase 1 was around $85 m. Without delay phase II was $(190)m ish. With BSOP phase II was $170000 odd.

Anyone else get these figure? Please say yes.

D.f i use is 11% using MM2 to find ke . I use ke since is all equity .. no need to find WACC. I do not understand what u mean by

The NPV of phase 1 was around $85 m. Without delay phase II was $(190)m ish. With BSOP phase II was $170000 ?

[Lesbella]

@adurich said:
So I put 42 contracts …but I m afraid how much will I lose

Contract should be 49 contract. Using 10.5m÷0.5×7/3

[Lesbella]

@adolf121 said:
The question gave us the ungeared Ke. So we need to use the MM formula to get the geared cost of equity. With Ve = .60 and Vd =.40.

Then we need to find the WACC using the above proportion 40/60.
Long story short WACC was 11% me thinks.

Mine was the same using 11%.

For delay option for PV of future cashflow. I use the figure and 11% and by until anunity table of 6 year. too.. How to use 5% when it is cost of debt . That why question ask to comment on CFO belief.

[Lesbella]

Q4 and Q5 is published only

[Lesbella]

@alisonnln said:
Timing is just such a pain.. Spoke to lecturer after and he said that timing is the main reason the pass rate is so low because people usually leave out questions.

He said mainly people leave out question 2.

I left question 4 until the end. I got part A & B complete (1. 5 paragraphs per mark).. Regarding section C, 7 marks, I got 1 or 2 bullet points down as time was lost but i also didnt have a clue what to write.

Did you guys get it finished?/ all questions answered?

I did not manage to finish . Probably 15 mark nothing written due to time pressure on question 1

[Lesbella]

@chris1975z said:
I’m not sure it’s pessimism…more realism!! My only positive is that I did complete the paper…albeit I feel for the poor marker traipsing their way through it! 🙂

I feel you. I think we are all in the same situation due to time pressure. Just barely read thru the question in Q2 and optional question

[Lesbella]

Can someone remember what they write in question 2 ?

[Lesbella]

For the sale of boxer rail which have asset. The asset should have perform impairment review as there is indicator of poor sale. And asset held for sale. Fair value is subjective and complex right. One buyer for the sale is too simplistic right. Should get market value to identify correct valuation. .

Not sure is this stand for the sale of railway

I think there is ifrs 15 revenue recogition issue. Although not recorded for 10 percent. But there may be other contract with is recorded. Therefore i say revenue may be overstated

[Lesbella]

@laurlou said:
Q1
a) Bus risks (8)
b) RoMm (12)
c) Restructuring Provision (5)
e) Ethical (6)
4 proff

I remember if correct that there is sale of division . But the restructuring provision no announcement made right. And the restructuring is likely signed on august 2018 with is 1 month after year end .

Correct me if i am wrong

[Lesbella]

@vorkath said:
Did anyone else use the lack of diversification as a business risk? Also the gearing was 70% which seemed high but I wasnt sure whether its high for a construction company.. regardless I went on about breaching loan covenants and going concern risk..

Lack of diversification in acquisition. Unsystematic risk not mitigate. Put further cashflow pressure on boxer due to acquisition cost and legal cost. As boxer have only 0.3 millon and gearing increase at 0.7.

[Lesbella]

Can u remember what error?

I state the sequence of basis of qualified report should be place after the opinion paragraph. The kam should be after the basis of opinion. Should remove the emphasis of matter and replace material uncertainty related to going concern. No accounting standard mention in valuation of financial instrument . Unprofessional language saying finance director is inexperience. The pharse we believe state not uncertainty by auditor. And never mention which customer

[Lesbella]

Do you recall how much mark is the criticise of audit report ?

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Can anyone share what you all wrote for question 2 and question 4 .

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This exam seen time pressure for Q1 and i am rushing for the remaining question with 1hr 45 mims

[Lesbella]

Q1,Q2 and Q4 there is audit procedure and evidence

[Lesbella]

Q2 and q3 for december is online now. Just cross finger that can clear but i doubt so.

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@spagnolm said:
September paper was classified as relatively more straightforward paper than usual. A testament to this was the pass rate of 53% which by many standards was above normal. Hence, we were expecting a tougher paper for December.

I agree with you

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Do you all think that some of the question examiner are testing are not specific ? Look like trying to play mind game with us.

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It was business risk

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I got 48% june sitting. But compare to september paper. I think i pretty screwed up for q2 and q3

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Do any one what the topic about? I find it hard to understand the question and what they looking for. It seen like this paper on a very niche side this time round

[Lesbella]

This sitting in Sep’16 is horrible compare to June. Most of the requirement don’t really link to the case. And is more on a narrowly

[Lesbella]

I use net profit /ta-cl

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